Qianjiang Water Resources Development Co., Ltd. (600283) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Qianjiang Water Resources Development Co., Ltd.

Why is Qianjiang Water Resources Development Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 14.19% and Operating profit at 17.09% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 10.55% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 14.19% and Operating profit at 17.09% over the last 5 years

Flat results in Mar 25

INTEREST(9M) At CNY 67.98 MM has Grown at 55.06%
INTEREST COVERAGE RATIO(Q) Lowest at 369.68
OPERATING PROFIT(Q) Lowest at CNY 77.1 MM

With ROE of 9.89%, it has a very expensive valuation with a 1.54 Price to Book Value

Over the past year, while the stock has generated a return of -7.16%, its profits have risen by 8.1%
At the current price, the company has a high dividend yield of 1.9

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -7.16% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Utilities)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Qianjiang Water Resources Development Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Qianjiang Water Resources Development Co., Ltd.

-7.16%

0.13

24.41%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.19%

EBIT Growth (5y)

17.09%

EBIT to Interest (avg)

5.11

Debt to EBITDA (avg)

2.24

Net Debt to Equity (avg)

0.77

Sales to Capital Employed (avg)

0.44

Tax Ratio

23.64%

Dividend Payout Ratio

58.14%

Pledged Shares

Institutional Holding

ROCE (avg)

8.45%

ROE (avg)

10.55%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.54

EV to EBIT

19.54

EV to EBITDA

9.60

EV to Capital Employed

1.31

EV to Sales

3.02

PEG Ratio

Dividend Yield

1.89%

ROCE (Latest)

6.69%

ROE (Latest)

9.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -11.9% (YoY

CASH AND EQV(HY)

Highest at CNY 2,633.58 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.33%

NET PROFIT(Q)

At CNY 53.85 MM has Grown at 77.44%

-13What is not working for the Company

INTEREST(9M)

At CNY 67.98 MM has Grown at 55.06%

INTEREST COVERAGE RATIO(Q)

Lowest at 369.68

OPERATING PROFIT(Q)

Lowest at CNY 77.1 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 16.08 %

PRE-TAX PROFIT(Q)

Lowest at CNY 67.65 MM

Here's what is working for Qianjiang Water Resources Development Co., Ltd.

Net Profit

At CNY 53.85 MM has Grown at 77.44%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 2,633.58 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 2.33%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -11.9% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Qianjiang Water Resources Development Co., Ltd.

Interest

At CNY 48.9 MM has Grown at 74.25%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 369.68

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 77.1 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 16.08 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 67.65 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)